For the first time in five years, the city of Oceanside will have money to spare as the City Council prepares a spending plan for the coming fiscal year, City Manager Peter Weiss said last week.

“It’s positive, it’s good news,” Weiss said.

Council members will begin setting spending priorities for the 2013-14 fiscal year at a workshop at 2 p.m. Wednesday at City Hall.

Not only will the city be able to avoid making any additional cuts in services or personnel, but the council is in a position to restore some services, at least for now, Weiss said.

“We can take a break here, we can breathe a sigh of relief,” Weiss said.

He said that, as things stand now, the council will have an extra $1.3 million to dole out for the fiscal year that begins July 1.

The extra cash comes from money the city is getting back from the dissolution of its redevelopment agency and a refund of county charges for administrative fees relating to property tax collection.

When the state ordered an end to redevelopment agencies statewide last year, redevelopment money that would have gone for affordable housing was redistributed to a variety of agencies including the city for its general fund, which covers most day-to-day city functions.

Because the money is a one-time infusion of cash and will not be available in future years, Weiss is advising that the city use it to cover expenses that will not be recurring or can easily be cut back.

Possibilities for that money, outlined by Weiss in a memo to the council, included restoring library hours, stepping up maintenance of the Municipal Pier, increasing street repairs, increasing code enforcement and resurrecting a traffic calming program aimed a slowing traffic in residential neighborhoods.

The extra cash with no immediate shortfall looming is in sharp contrast to the past several years, in which the council slashed spending on a wide range of services, cutting back on library hours, closing one of the city’s two swimming pools and eliminating more than 150 jobs since the 2008-09 fiscal year.

“I’m cautiously optimistic that things are improving, which is indicated by us not having to do any reductions,” Weiss said.

Still, Weiss sounded a note of caution, warning that a year from now the city could be facing a budget shortfall of up to $1.7 million due to the rising costs of health insurance and pensions for city workers.

City sales tax and property tax revenue is rising, but not fast enough to keep pace, Weiss said.

Nevertheless, he said it’s too early to begin planning for possible future shortfalls.

“Let’s take a break, let’s reconvene in September or October, see where we are, what we’ve got to do for the next year,” Weiss said.

Some of the $1.7 million 2014-15 shortfall could be erased by concessions from city labor groups, Weiss said. Several contracts, including the police contract, are up for negotiation and the city has been pressing for concessions as contracts expire.